Credit Scores Experience Sharpest Decline Since Financial Crisis

The average FICO score dropped to 715 in April 2025, marking a two-point decline from 717 the previous year. This represents the most significant one-year drop since 2009, when scores fell three points during the Great Recession.

Rising credit utilization and increased delinquencies, particularly in student loans, are driving the downturn. Gen Z borrowers bear the brunt of the impact, with their average scores falling more sharply than other demographics due to mounting student debt burdens.

The end of COVID-19 protections has triggered a surge in student loan delinquencies, which began appearing on credit reports in early 2025. Credit utilization ratios continue to climb, reflecting persistent financial pressures from elevated inflation and high interest rates.